Compliance for sweepstake draws in the USA

Sweepstakes (sometimes informally called Giveaways) are regulated by the Federal Trade Commission, US Post Office, the Federal Communications Commission, the Department of Justice and the IRS. Sweepstakes are also regulated by individual state law, which means you need to comply with every jurisdiction in which you run your sweepstake.

The strictest regulations are applied by New York, Rhode Island and Florida. Their requirements may include registering the sweepstake with the designated state agency, posting bond and sending them the winners. Many sponsors of sweepstakes exclude these states from their promotions to make the administrative process easier.

It is important that the method of selecting the winners is random. This is a key aspect of running a legal sweepstake.

Some promoters print out the entries and perform a manual (non-electronic) draw. This is generally allowed if the process is fair and objective. However, in most cases, this is cumbersome and makes it difficult to keep records of the draw (it is important that you keep a record of the draw should you be reviewed by a relevant authority).

It is also a potential perception issue. Your entrants are likely to feel more confident about the objectivity of the draw knowing that it was performed electronically. It is generally fine to use a random function within a spreadsheet application. However, you would be advised to take screenshots of the process showing the input, the draw, and the output.

randomdraws.com™ meets the requirements of Federal and State laws with respect to the "randomness" of the draw process. And you are assured that you are keeping proper records should you need evidence of a proper draw. You will receive a certificate of compliance with each draw with all draw and approval details.